MSMEs in India employ almost 120 million people, and the sector is growing a 10% annual rate. The definition of MSMEs has, however, changed in recent times. Currently, organizations with a turnover of up to Rs.250 crore can be a part of this sector.
The growth of this sector in India has been stimulated significantly with the availability of MSME loans at affordable terms. A financial product like this can help organizations operating in this segment in various ways. Here are the highlights –
- It enables organizations to meet their working capital needs.
- Businesses can avail of funds for expansion, and upgrading the equipment.
- Companies can also purchase new machinery, or invest in new assets.
- Help businesses to meet any financial crisis without any issues.
Now that you are aware of what is MSME loan and its utilities, here are some notable features of this financial product –
- It has no restriction on its usage; thus, one can meet an array of requirements.
- Borrowers can get the loan amount within a couple of working days.
- The funds available here do not require any collateral submission.
- Lastly, the eligibility requirements are lenient and easy to meet.
The borrower-friendly features of this business loan have helped business owners to manage any financial requirements and help in the growth of this segment.